By Sarah Lizee
Olympia, Wash., Feb. 18 – Morgan Stanley Finance LLC priced $500,000 of contingent income autocallable securities due May 13, 2021 linked to the lesser performing of the iShares MSCI Emerging Markets ETF and the iShares China Large-Cap ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if each ETF closes at or above its coupon barrier level, 80% of its initial share price, on the determination date for that period.
The notes will be automatically called at par if each ETF closes at or above its call threshold level on any quarterly determination date after six months. The threshold will be 100% of the initial share price for each ETF.
The payout at maturity will be par unless either ETF finishes below its barrier level, 80% of its initial share price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines.
The notes are guaranteed by Morgan Stanley.
Morgan Stanley & Co. LLC is the agent.
| Issuer: | Morgan Stanley Finance LLC
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| Guarantor: | Morgan Stanley
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| Issue: | Contingent income autocallable securities
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| Underlying ETFs: | iShares MSCI Emerging Markets ETF and iShares China Large-Cap ETF
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| Amount: | $500,000
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| Maturity: | May 13, 2021
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| Coupon: | 10% per year, payable quarterly if each ETF closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | Par unless either ETF finishes below barrier level, in which case 1% loss for every 1% that lesser-performing ETF declines
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| Call: | Automatically at par if each ETF closes at or above its call threshold level on any quarterly determination date after six months; the threshold will be 100% of the initial share price for each ETF
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| Initial share prices: | $43.60 for EM ETF, $41.50 for China ETF
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| Coupon barrier level: | $34.88 for EM ETF, $33.20 for China ETF; 80% of initial share prices
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| Barrier level: | $34.88 for EM ETF, $33.20 for China ETF; 80% of initial share prices
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| Pricing date: | Feb. 10
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| Settlement date: | Feb. 13
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| Agent: | Morgan Stanley & Co. LLC
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| Fees: | 0.6%
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| Cusip: | 61770FKA3
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